Analysis of Burberry's Market Positioning and Repositioning Techniques

Desklib provides past papers and solved assignments for students. This report analyzes Burberry's marketing strategies.

REPORT BURBERRY
1

Table of Contents
INTRODUCTION............................................................................................................................. 3
1. EXPLAINING THE RELEVANCE AND IMPORTANCE OF POSITIONING AND REPOSITIONING.4
IMPLICATIONS FOR THE PERFORMANCE OF BURBERRY............................................................4
2. DEMONSTRATING THE POSITIONING MAP.........................................................................5
IDENTIFYING THE LOCATION OF THE COMPANIES IN THE MAP................................................5
3. METHODS FOR ACHIEVING REPOSITIONING OF BURBERRY...............................................6
CONCLUSION................................................................................................................................. 7
REFERENCES...................................................................................................................................8
2

INTRODUCTION
This is the case study of the company Burberry which was founded by Thomas Burberry in
1856. This is the British company with having luxury and durability brand which manufacture,
designs and distributes the clothing of high-quality products and accessories for men, women
and children (BURBERRY, 2017). The case study will lay emphasis on brand positioning and
repositioning and where the company located on the positioning map.
1. Explaining the relevance and importance of positioning and
repositioning
POSITIONING
Positioning is the method used for tailoring the product for which it can stand out from the
competitive products and want by people to buy it. For making the position in the market the
company focuses on differentiating the sort of the different brands of the products (Yang,
2017). Burberry has globally more than 200 own brand stores.
Marketing
Marketing is the process of identifying and determining the market to communicate with
targeted customers with respect to know their needs and desires. Marketing plan involves
positioning which is an essential element to know the position of the company in the market
(Kotler, 2015). It includes-
 Identifying and understanding customers’ needs
 Communication channels should be targeted (Yang, 2017)
Physical traits
The Burberry is a unique style brand and provides high-quality fashion that includes leather
goods, clothing, handbags etc. The company has the strong brand name and position in the
3

market due to its luxurious products and it introduces every new product with a unique style
that its competitors cannot copy its products (Wilson and Robson, 2019).
REPOSITIONING
Repositioning contains the changes in the existing product and change in the positioning of the
brand. An industry can be considered repositioning of the brand or of the product it is because
of the change in the market and atmosphere (Villas-Boas, 2018). The reasons which cause
repositioning are:
 Increase in the sales of the competitive brand products
 Change in customer choices and preferences (Villas-Boas, 2018)
 Customers are getting engaged in new and luxury products
Implications for the performance of Burberry
The implications for the successful move of Burberry are as follows:
 Brand image
Burberry brand image gets impacted due to the success of the company after implementing
changes. The company is more focused on enhancing the cost and luxury of the products which
attracts more of the customers (Yang, 2017). The trend of purchasing luxury and costly products
affects the Burberry in a positive way and the competitors in a negative way.
 Market position
The market positioning of Burberry will get impacted by the implication of the changes due to
change in the trend. The market position of the company will increase as the sales will increase
the luxury products (Wilson and Robson, 2019).
 Profit and sales
The Burberry profit will increase as the increase in sales due to result in the satisfaction of the
customers by their luxury products prevail in the market. It increases the sales and profit of the
company (Wilson and Robson, 2019).
4


5

2. Demonstrating the positioning map
Mapping is important to understand the perceptions of the customers for the products.
Positioning map
Burberry has set the brand position as “functional luxury” in the minds of the customers. It
designs products responsive to the fashion trends and introduces the products on collection by
collection basis (Chen and Wang, 2015). The perception of the customers on the basis of the
products quality, benefits and price demonstrate the positioning of the Burberry on positioning
map.
The positioning of Burberry can be changed by:
 Identifying the market trend and the competitors’ products as well as what customers
need and wants according to the trend (Chen and Wang, 2015)
 Burberry have to develop a different positioning idea or plan to maintain the position
in the market better than the competitors
 The company should identify its brand positioning, which catches well by the
customers before purchasing any product from the market (Chen and Wang, 2015)
 At last Burberry have to test the brand positioning statement
Identifying the location of the companies in the map
Burberry keeps a product line by excessive width and depth containing many products and the
products fall into fashion or continuity. The brand positioning of the Burberry along with its
competitors are laid on the positioning map by focusing on price and quality.
(Chen and Wang, 2015)
6
High price
Low quality High quality
Low price
Burberry
Gucci
Primark

3. Methods for achieving repositioning of Burberry
There is a need for Burberry to improve appeal in its domestic market to achieve repositioning
in the market (Villas-Boas, 2018).
The methods of repositioning are:
 Real repositioning
Real repositioning is the method used by the Burberry to redesign its brand products which are
helpful for matching the customers' practice by altering the features of the products (Villas-
Boas, 2018).
 Psychological repositioning
Psychological repositioning is the method of gaining the customer's belief and trust towards the
brand and its products (Villas-Boas, 2018). Burberry used this process to attain its repositioning
in the market.
Brand repositioning strategies are:
 Brand extension
Burberry used the strategy of brand extension to extend its business by providing luxury and
high-quality products and services to the customers. Brand extension is the tool for brand
management which helps Burberry to extend its business. The brand extension may be for the
new products or the existing product line (Hayran and Gürhan-Canli, 2016).
The brand extension helped Burberry in changing the existing products and launching new
products. This will raise brand visibility and also helps the company to fight the market
competition by covering the places globally (Villas-Boas, 2018).
7

 Brand Relaunch
Burberry has to be Relaunch and rework the products and its services to grow more in the
market at diverse level. Burberry can change the strategy including the sales structure, sales
organization and sales effort it can also modify the distribution channel (Hayran and Gürhan-
Canli, 2016).
The procedure for the approval of the customers that follows the essentials of communication
mix including designs, the packaging is known as Brand Relaunch (Villas-Boas, 2018).
Repositioning catches the eyes of the customers on the existing products or newly launched
products and the elements of communication mix helps Burberry in repositioning its brand in
the mind and heart of the customers (Hayran and Gürhan-Canli, 2016).
CONCLUSION
Thus, it concluded that the report on Burberry market growth that has included the importance
of positioning and repositioning for the Burberry and the marketers. This has also included
strategies which helped the Burberry to catch its market position. The positioning map has
shown the position of the Burberry and its competitors Gucci and Primark. This report has also
laid emphasis on the methods and strategies of repositioning which helped Burberry to get its
market repositioning.
8

REFERENCES
BURBERRY, S., 2017. MARKETING SUCCESS.
Yang, X., Cai, G.G., Chen, Y.J. and Yang, S.J.S., 2017. Competitive retailer strategies for new
market research, Entry and positioning decisions. Journal of Retailing, 93(2), pp.172-186.
Villas-Boas, J.M., 2018. A Dynamic Model of Repositioning. Marketing Science, 37(2), pp.279-
293.
Hayran, C. and Gürhan-Canli, Z., 2016. Brand extensions. In The Routledge Companion to
Contemporary Brand Management (pp. 168-184). Routledge.
Wilson, M. and Robson, K., 2019. Overexposure of a luxury brand: Coach Inc.’s distribution and
image problem.
Chen, R. and Wang, M.H., 2015. Brand positioning map: a strategy tool for trademark design.
Journal of Management and Strategy, 6(1), pp.36-44.
Kotler, P., Burton, S., Deans, K., Brown, L. and Armstrong, G., 2015. Marketing. Pearson Higher
Education AU.
9